A Risk-Averse Newsvendor Model under Stochastic Market Price
The optimal inventory control is closely related to an enterprise’s operational efficiency, survival, and development. Market price uncertainty is introduced into the newsvendor model and the uncertainty’s impact on the firm's optimal stocking quantity is discussed. The results show that the im...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/9967359 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832556523154309120 |
|---|---|
| author | Huirong Zhang Zhenyu Zhang Jiaping Zhang |
| author_facet | Huirong Zhang Zhenyu Zhang Jiaping Zhang |
| author_sort | Huirong Zhang |
| collection | DOAJ |
| description | The optimal inventory control is closely related to an enterprise’s operational efficiency, survival, and development. Market price uncertainty is introduced into the newsvendor model and the uncertainty’s impact on the firm's optimal stocking quantity is discussed. The results show that the impact of stochastic market price on the optimal stocking quantity under a given condition mainly depends on the magnitude of inventory cost. When the inventory cost is low, the market price’s uncertainty leads the firm to increase the stocking quantity. In contrast, when the inventory cost is high, market price uncertainty leads the firm to decrease inventory. Besides, the risk-averse behaviour leads the firm to reduce its stocking quantity. |
| format | Article |
| id | doaj-art-ade44f0524a74e4e829b5b3d48a0e68c |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-ade44f0524a74e4e829b5b3d48a0e68c2025-02-03T05:45:11ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/99673599967359A Risk-Averse Newsvendor Model under Stochastic Market PriceHuirong Zhang0Zhenyu Zhang1Jiaping Zhang2School of Labor Relationship, Shandong Management University, Jinan 250357, ChinaSchool of Automation, Nanjing University of Science and Technology, Nanjing 210094, ChinaSchool of Public Administration, East China Normal University, Shanghai 200062, ChinaThe optimal inventory control is closely related to an enterprise’s operational efficiency, survival, and development. Market price uncertainty is introduced into the newsvendor model and the uncertainty’s impact on the firm's optimal stocking quantity is discussed. The results show that the impact of stochastic market price on the optimal stocking quantity under a given condition mainly depends on the magnitude of inventory cost. When the inventory cost is low, the market price’s uncertainty leads the firm to increase the stocking quantity. In contrast, when the inventory cost is high, market price uncertainty leads the firm to decrease inventory. Besides, the risk-averse behaviour leads the firm to reduce its stocking quantity.http://dx.doi.org/10.1155/2021/9967359 |
| spellingShingle | Huirong Zhang Zhenyu Zhang Jiaping Zhang A Risk-Averse Newsvendor Model under Stochastic Market Price Discrete Dynamics in Nature and Society |
| title | A Risk-Averse Newsvendor Model under Stochastic Market Price |
| title_full | A Risk-Averse Newsvendor Model under Stochastic Market Price |
| title_fullStr | A Risk-Averse Newsvendor Model under Stochastic Market Price |
| title_full_unstemmed | A Risk-Averse Newsvendor Model under Stochastic Market Price |
| title_short | A Risk-Averse Newsvendor Model under Stochastic Market Price |
| title_sort | risk averse newsvendor model under stochastic market price |
| url | http://dx.doi.org/10.1155/2021/9967359 |
| work_keys_str_mv | AT huirongzhang ariskaversenewsvendormodelunderstochasticmarketprice AT zhenyuzhang ariskaversenewsvendormodelunderstochasticmarketprice AT jiapingzhang ariskaversenewsvendormodelunderstochasticmarketprice AT huirongzhang riskaversenewsvendormodelunderstochasticmarketprice AT zhenyuzhang riskaversenewsvendormodelunderstochasticmarketprice AT jiapingzhang riskaversenewsvendormodelunderstochasticmarketprice |